The five new emerging economies to watch for big rewards

Investors with an appetite for risk and looking for good returns should look for the next growth story, possibly among 'frontier' markets

Vietnam is increasingly the low-cost manufacturer of choice in Asia (Claro Cortes)

Investors are being urged to look beyond traditional emerging markets if they
want to get in on the next big growth story.

China’s economy grew 10.3% last year and is expected to rise 9.6% this year,
said the International Monetary Fund, which predicts China will overtake the
US in terms of share of world GDP by 2016. Its stock market rose 14.1% over
the year, said MSCI, the index.

One of the oldest funds specialising in China is Baring Hong Kong China. Since
December 1985, it has returned 8,200% after fees, against 1,003% for the
FTSE 100.

Investors looking to recreate this sort of return, therefore, could look for
the next growth story, possibly among “frontier” markets. For example, Qatar
had the fastest growing economy in 2010, at 16.3%. It is expected to grow
20% this year. Its stock market rose 20.4% over the past 12 months.